The government is reviewing the allocation of 61 blocks that have not started production and not achieved milestones such as green clearances. The IMG found two blocks had obtained the necessary clearances, and for the remaining eight, it gave the companies nine months to get the approvals. The decision was taken on Tuesday after a meeting of the IMG, which has representatives from ministries of coal, power, finance, forest and law ministries.

According to government and industry sources, Essar Power and Hindalco submitted to the IMG that they have already availed Stage II forest clearance for Mahan Block while DB Power too updated about receipt of final forest clearance for Durgapur II / Sarya Block.

Last month, coal ministry wrote to these companies that the IMG will check if they have obtained Stage II forest clearance or it will be forthcoming within a reasonable time. The IMG made a stern recommendation to de-allocate 32 blocks for which were allocated to Essar Power, Jindal Steel & Power, Adani Power, Tata Steel, Ultratech, Hindustan Zinc, Hindalco, Sterlite, GMR, Arcelor Mittal, Lanco, JK Cements, Monnet Ispat and ACC Cements among others.

Many of these companies have already made heavy investments in power projects to be fueled from the government-allotted mines. Some of these firms already received interim relief from different high courts and the government has put its decision to de-allocate some of the blocks on hold.

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